A Legislative Shift Developers Can Leverage
Effective September 1, 2025, Texas Senate Bill 840 will change how multifamily and mixed use projects are entitled in major metropolitan areas. The new law allows residential development by right on land zoned for office, commercial, retail, warehouse, or mixed use. This eliminates the need for rezoning, variances and city council approvals.
The law applies to municipalities with populations over 150,000 in counties of more than 300,000 residents, including DFW, Austin, Houston and San Antonio.
What SB840 Delivers
SB840 removes political uncertainty from the approval process and replaces it with a clear, code-driven path. Compliant projects move forward with administrative approval.
The law also introduces a new track for adaptive reuse. Older office, retail or warehouse buildings can be converted into residential use with fewer requirements; no new traffic studies are needed, no additional parking is required and no new impact fees apply. Design standards default to IBC minimums.
Key Differences: Before and After SB840
| Topic | Before SB840 | Under SB840 |
|---|---|---|
| Zoning | Often required rezoning or SUP | Allowed by right in commercial and mixed use zones |
| Process | Public hearings and council votes | Administrative staff-level approval |
| Density | Typically <30 du/ac | Minimum 36 du/ac or citywide max |
| Height | Commonly limited to 35–45 ft | Minimum 45 ft or existing commercial height |
| Setbacks | Often exceeds 25 ft | Capped at 25 ft or commercial standard |
| Parking | 1.5–2.0 spaces per unit | Max of 1 space per unit |
| Conversions | Additional studies and upgrades required | No new studies or upgrades; IBC governs design |
| Enforcement | Discretionary process with delays | Legal remedy with fee recovery for noncompliance |
Why It Matters for Development
By removing the need for public approvals, SB840 creates new opportunities on underutilized commercial sites. It transforms the entitlement process into a straightforward compliance check.
This change allows developers to move faster, reduce predevelopment risk and secure deals with more confidence. Projects that meet the new standards can move directly into permitting.
BSB Design’s Role: Clarity from Day One
At BSB Design, we help clients move quickly by designing to the new legal framework. Our intensive Charrette Process provides fast, code-aligned solutions that reduce delays and increase confidence in project viability.
Our team delivers:
- Code and site-fit analysis to confirm by-right compliance
- Unit mix and stacking plans that avoid structured parking
- Conversion feasibility studies for adaptive reuse projects
- Submittal-ready design packages for administrative approval
Speed + Certainty = Competitive Advantage
With SB840, developers can eliminate rezoning contingencies, shorten PSA timelines and reduce holding costs. Projects can be underwritten based on statutory thresholds rather than political outcomes. Early design decisions reduce change orders, and streamlined approvals lead to faster lease-up and revenue generation.
What to Watch For
Not all sites will qualify. The law only applies in specific municipalities and counties and excludes certain zones like heavy industrial and military or airport overlays. For mixed use projects, at least 65% of the gross square footage must be residential. For adaptive reuse, the building must be at least five years old and meet the same 65% residential threshold on each occupiable floor.
Municipalities are already updating review processes, and BSB Design is actively coordinating with jurisdictions to ensure clients stay ahead.
Final Take
SB840 creates new potential in areas with strong infrastructure and visibility. At BSB Design, we help translate that opportunity into action with smart, efficient design that meets code and accelerates timelines. If you’re looking to capitalize on this legislative shift, we’re ready to help.
SOURCE: Texas Legislature OnlineTroutman Pepper Locke – HomepageFoley & Lardner LLPirvingtx.gov
